Changes of Company Power Centre and Responses from Company Law

Company power centre refers to the departments that have company's core decision-making and executive power. Changes of such a centre happened in the history of company development both at home and abroad. Though the changes are different in various countries, the responses from Company Law bear similarities: to strengthen the power of decision-making and execution for new power centre as well as the authority to supervise for other non-power-centre departments. The changes of company power centre in China exhibit its own features. In 2005, Company Law made responses to the change of company power centre, promoting both the development of corporate governance structure and business efficiency, yet it still has deficiencies. Influenced by political factors, "dual structure" may appear in the shareholding structure of Chinese public companies, which will lead to new changes in corporate governance structures. Company Law needs to make logical responses to these changes.